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Evolving E-Commerce to the Next Generation
By Mark Merkow, CCP, CISSP
September 8, 1999

Internet sales order processing stands at a crossroads. With emerging payment standards, such as the Secure Electronic Transaction (SET) protocol, first-generation e-commerce practices are rapidly reaching the end of usefulness. They simply will not hold up to the online transaction processing requirements of the next-generation of e-commerce.

What many now call their e-commerce system is little more than a glorified extension of paper-based processing, with few (if any) linkages into back office order entry and fulfillment systems. More often than not, Web form-based capture of input from a customer is received via e-mail, printed off, and rekeyed into a data entry terminal. Even today''s giants in online sales admit these shortcomings. "The way it works today, we reinput them" claims Dell''s Senior Marketing Manager Bill Morris as he describes how Dell processes the orders they receive over the Internet.

Like any other technology, there''s good and bad news. The good news is that companies have begun to learn about their customer''s online buying habits. The bad news is that customer relations are in jeopardy.

Internet shoppers, led to believe they''re transacting in real time often become disillusioned and take their business to competitors or back to the offline world when days or weeks go by and their order is still waiting. Worse, if days pass before a call arrives informing them that their order can''t be filled right away, they may become furious and cancel their order altogether. Either way, business is threatened. Obviously, changes must be made before the promise of Internet commerce can be fulfilled.

Ideally, Web-based commerce stands to save companies veritable fortunes in operating costs by eliminating human intervention in order processing. Tight Web-to-legacy system integration would help to realize this goal. While colossal work is required to achieve success, those who pull it off stand to lead the marketplace.

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